Amazon, Comcast and Electronic Arts all are intending to expand their footprints in the gaming business as companies took part in initial bids last week for the holding firm which has larger stakes in South Korea’s biggest gaming firm Nexon, reported South Korea’s Maeil Business newspaper on Wednesday, citing investment banking sources.
The bids from the U.S. companies came a week after submission of letter of intent to buy the holding firm, NXC Corp by three of the South Korean firms Kakao, Netmarble and MBK, a private equity firm.
No matter which of the company come up winning the deal but it could possibly to be the biggest one in the South Korea, a source familiar with the matter said.
The deal is likely to be coming up to at least 10 trillion won ($9 billion) as formation strategy and bid terms are developing for the outcome of the deal that has a potential to not only change the IT sector in general but also to reshape the global gaming industry more specifically.
Founder of Nexon, Kim Jung-ju in earlier last month has announced his plans to sell 98.64 percent of his share in the South Korea-based NXC Corp, which owns 47 percent of Tokyo-based gaming firm Nexon.
The Korean government might force to sell the stakes to Korean bidder Netmarble, but Amazon, Comcast and Electronic Arts could be higher bidders as Nexon have larger opportunities for them, said Mike Vorhaus, a longtime game industry analyst and CEO of Vorhaus Advisors.
Winning Nexon deal, Comcast could get a major breakthrough in gaming business which is more lucrative than business of TV and films, EA can get it gaming gaps filled with the deal and Amazon could quickly become major player in PC gaming with an exposure in mobile games, he added.
In case the deal is forced to be in favor of NetMarble then it has to come up with offer matching with the new offers to provide full value to Nexon’s shareholders, Vorhaus said.